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Posts with tag liquified natural gas

Best energy ideas: Liquified gains for Cheniere (CQP)

Through a combination of capital gains and dividend yield, the goal of The 25% Cash Machine is to generate 25% annual returns from a combination. Editor Bryan Perry is now building a new position for this portfolio: Cheniere Energy Partners (NYSE: CQP), a play on liquefied natural gas (LNG).

The advisor explains, "LNG is natural gas -- the same clean, safe energy source used to fuel our homes and industries -- that's been reduced to 1/600th its volume through a sophisticated refrigeration process. In liquid form, natural gas can be shipped long distances safely and economically in specially designed ships with insulated storage tanks.

"World demand for liquefied natural gas is expected to double by 2010. The reason demand for LNG is growing is that it is viewed as safe, flexible, reliable, and economical. One other big (perhaps the biggest) plus in the current (and growing) green climate is that LNG is environmentally acceptable.

Continue reading Best energy ideas: Liquified gains for Cheniere (CQP)

Clean Energy Fuels IPO a bit tamer than hoped

Clean Energy Fuels (NASDAQ: CLNE) accomplished a mildly solid showing with their IPO on Friday, although the project was scaled back from previous expectations. Well-known oil man T. Boone Pickens, principle shareholder of the company, had upped his expectations in March 2007 from $287.5 million initially to $354 million, as reported by Orange County Business Journal. The expected IPO share price had been in the $13 to $17 range on an anticipated volume of 20 million shares. On Friday, however, expectations were lowered and 10 million shares were sold at $12 and the shares rose in value marginally.

It's been speculated that economic conditions were mostly to blame for both the revised expectations as well as the tepid IPO performance. Clean Energy Fuels is an established company with at least some profitable history. The IPO is expected to fund growth in manufacturing capacity and product outlets, as well as to underwrite growth of the company's customer base. Clean Energy provides natural gas for municipal service trucks, buses, and other fleet vehicles. In 2006, Clean Energy had sales of $91 million but showed an operating loss of nearly $9 million. Currently the company has an estimated market value of about $600 million, and Mr. Pickens owns about 73% of the company.

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Last updated: October 10, 2008: 10:26 PM

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